Leggett & Platt completes sale of diecasters.

Diversified manufacturer Leggett & Platt, Carthage, Mo., received $300 million in cash, a $25 million subordinated note and preferred stock in the sale of its Aluminum Products segment, a divesture it has been planning since November 2007.

The aluminum division, composed of aluminum, zinc and magnesium diecasters, was sold to private equity firm Kenner & Company Inc., New York. It was the first of seven divisions the company intends to purge. The company still plans to divest or liquidate the six other business units in 2008.

According to a press release issued by the company, Leggett intends to use a portion of the cash proceeds to repurchase its stock. The divestiture is part of a plan to eliminate approximately one-fifth of the company's business portfolio via the sale or liquidation of the seven business units. Of the units (which collectively generate about $900 million in annual revenue), the company's Aluminum Products segment is the largest.

"This transaction generates approximately $300 million of after-tax cash proceeds immediately," said David Haffner, Leggett & Platt president and chief executive officer. "From an overall perspective, we have now received 75% of the $400 million of after-tax cash proceeds we originally anticipated from the divestiture of our seven targeted business units."